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Tradex Bond Fund

For investors seeking preservation of capital and a steady income stream. About one-third of the portfolio is normally invested in Government of Canada bonds with the remainder invested in provincial and corporate bonds with a credit rating of single A or better. The Tradex Bond Fund was created in 1989.

Investment Objectives

To achieve a combination of income and long-term capital preservation, by investing primarily in a diversified portfolio of investment grade Canadian bonds. In addition, up to 30% of the portfolio may be invested in income producing equity securities, such as common shares of Canadian companies that pay dividends, real estate investment trusts, preferred shares, and income trusts.  The average term to maturity of the bond portfolio must be greater than three years.

 Any change in these fundamental investment objectives would require the approval of unit holders of this Fund.

Investment Strategies

The portfolio advisor utilizes interest rate anticipation, credit sector and security selection strategies in the context of a long term, bottom–up, value oriented approach.  The approach for fixed income securities is conservative in nature and is based upon an overall forecast derived from both macroeconomic and technical analysis with the selection of bonds based upon optimal risk/return characteristics. The equity portion of the Fund will be a diversified portfolio of quality companies that are deemed to be undervalued relative to their intrinsic value and selected to enhance the yield of the Fund with the intention to reduce the negative impact on the portfolio’s market value should interest rates rise.

Portfolio Adviser

The portfolio is managed by Foyston, Gordon and Payne Inc., of Toronto, ON. (For more details on Foyston, Gordon & Payne Inc., click here).

Minimum Purchase

$1,000 minimum initial purchase; minimum subsequent investment is $100. (The $1,000 minimum is waived in cases where the investor sets up a regular pre-authorized debit plan from his/her bank account and also in cases where parents or grandparents establish an in trust account for a minor.)

Performance: Period Ending January 31, 2012

For More Information

Commissions, trailing commissions, management fees and expenses may all be associated with mutual fund investments. Please read the prospectus before investing. The rates of return include reinvestment of all distributions and do not take into account any sales, redemption, distribution or optional charges or income taxes payable by an investor that could have reduced returns. Mutual funds are not guaranteed, their values change frequently, and past performance may not be repeated.